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<br />8A <br />Page 3 <br /> <br />'Oooslly Bonus' Continued from Page 1... <br /> <br />Here are the bill's highlights: <br /> <br />. Fairness in Timing. A number of cities have reported that developers are asking for new <br />concessions or incentives in the middle or toward the end of a project. This bill would put <br />into state law the requirement that such requests would have to come at the beginning of <br />the process, or at least before the first discretionary decision is made on the project, to <br />assure that whatever requests are made can be considered in the supporting <br />environmental documents, <br /> <br />. Fixing a Bad Precedent. The density bonus law currently includes a provision that entitles <br />a senior affordable housing development to a 20 percent density bonus. A California <br />court of appeal, however, interpreted this to mean that any project that included a senior <br />affordable housing project of at least 50 units was entitled to 20 percent density bonus <br />across the entire project, not just for the senior development (Friends of Lagoon Valley v. <br />City of Vacaville, A 113236, 2007). Thus, a developer of a 1,Ooo-unit housing <br />development that included 35 units of moderately affordable senior housing is entitled to <br />an additional 200 units. The court admitted that this interpretation would often result in a <br />'windfall" for the developer. This bill clarifies that the 20 percent density bonus applies to <br />the senior affordable housing only, not the entire project (of course, local agencies could <br />always grant more generous bonuses under the law). <br /> <br />. Consideration for Inclusionary Housing Programs. Another goal of the bill is to protect <br />those communities that have adopted inclusionary housing programs that include their <br />own concessions and incentive packages. Some of these communities have experienced <br />developers who take advantage of these packages, then demand more under the density <br />bonus law. However, many other communities directly incorporate the concession and <br />incentives of the density bonus law directly into their inclusionary programs. This bill <br />seeks to restore a balance in these provisions by respecting local incentive packages <br />without limiting other local agencies' reliance on current provisions in the density bonus <br />law. <br /> <br />The bill addresses several other minor and technical issues. Cities are strongly encouraged to <br />send a support letter to their local assembly member within the next two weeks to help assure <br />this bill moves off the Assembly floor. <br /> <br />A sample letter, with the appropriate contacts to which to send copies, is available at <br />www.cacities,oro/billsearch, Plug in AB 2280 to the bill search function to access the sample <br />letter of support, along with faxing instructions. <br /> <br />Budget Action Day Scheduled for Wednesday, May 21 <br /> <br />The League is holding a special one day event on May 21, following the release of the May <br />Budget Revise, to bring city officials to Sacramento to lobby their legislators and administration <br />officials on the impact of the budget on cities. The session is designed so city officials can come <br />just for the day. <br /> <br />With California's fiscal crisis, the FY 2008-09 budget negotiations are predicted to be extremely <br />difficult. The final signed budget will likely include a combination of significant cuts and revenue- <br />generating solutions, and the May Revise (scheduled to be released May 15) will set the tone for <br />the coming weeks of negotiations. California cities need to join forces to respond to any relevant <br />May Revise proposals to ensure cities' needs are heard and understood in the Capitol. <br /> <br />Schedule of Events <br /> <br />10 -11:30 8.m" May Revise Budget Briefing <br />Sheraton Grand Sacramento Hotel, Bataglieri Room <br />1230 J Street <br />Sacramento, CA 95814 <br /> <br />3 <br />